A bit strange and I do not have any experience with D3 S8.
Considering this
Quote:
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one thing when I reset all codes with engine at idle - it sounds like the engine smooths out for a few seconds before pulling misfire codes again.
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I would say ECU detects a problem and cuts fuel to the problematic cylinders to save cats from unburned fuel going into them and damaging them and that results in more misfires. So I would monitor any odd behaviour after you reset and see if there are any problems/reports of misfire in that time to see if it can pinpoint offending cylinder, if that changes over time that it's got to be fuel supply or air metering issue.
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Currently 8less
2011 Q7 S Line 3.0TDI, 2016 Tesla Model S 90D
8 history:
2006 A8 Sport 4.2TDI quattro SOLD,
1997 S8, reached end of life with gearbox failure
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